Apple has reportedly dropped plans to lay off around 5,000 AppleCare employees as new CEO John Ternus moves to make the company leaner and streamline how it develops and launches products.
According to a Bloomberg report, the proposed AppleCare cuts were considered as part of a broader review of Apple’s workforce and operations. While Apple has decided against the large-scale reduction in customer support staff, smaller workforce cuts and budget reductions are still expected to remain part of the restructuring.
The changes come as Ternus begins shaping Apple following his appointment as CEO on September 1.
Credits: News18
Apple Reconsiders 5,000 AppleCare Job Cuts
The planned AppleCare layoffs were reportedly among the larger workforce reductions considered during Apple’s internal review. The company ultimately decided to retain the employees, suggesting that customer support operations will continue to receive greater protection as Apple looks for savings elsewhere.
Apple has not publicly confirmed the reported restructuring or the decision to abandon the larger AppleCare cuts.
The company is nevertheless continuing to examine its spending and organisational structure. Smaller workforce reductions and budget cuts are reportedly still being considered as part of efforts to improve efficiency.
Retaining AppleCare employees could also allow Apple to maintain customer support capacity while making changes to other parts of the business.
John Ternus Pushes Engineering-Focused Apple
Ternus took over from Tim Cook on September 1 after spending years as Apple’s senior vice president of Hardware Engineering. Cook moved into the role of executive chairman following the leadership transition.
The new CEO’s background in engineering is already influencing his approach to the company. Ternus is reportedly examining Apple’s product development process, with a focus on reducing bureaucracy and giving engineers a more direct path to senior decision-makers.
One area under review is Apple’s management structure. Ternus is considering reducing layers of middle management, potentially allowing product teams to move faster and make decisions with fewer organisational hurdles.
The changes reflect an effort to place engineering and product development closer to the centre of Apple’s decision-making process.
Apple Could Move Towards More Frequent Product Launches
Ternus is also reportedly considering changes to Apple’s traditional product launch calendar.
Apple has historically relied heavily on major spring and autumn launch periods, particularly for its biggest hardware releases. Under the new approach, the company could move towards more frequent product launches throughout the year.
A more continuous release schedule could allow Apple to introduce products and updates at a steadier pace rather than concentrating launches around a few major events.
Such a shift would also require changes across Apple’s engineering, supply chain, marketing and retail operations, making the product launch strategy an important part of the broader organisational review.
Ternus Puts AI and iPhone at the Centre
Ternus has already signalled an engineering-led approach during his first major Apple product event as CEO.
The iPhone remained at the centre of Apple’s AI strategy, with the company highlighting new hardware capabilities alongside its efforts to expand AI features across its ecosystem. Apple also introduced its latest hardware lineup, including the iPhone Duo.
The focus suggests that hardware development will remain closely tied to Apple’s broader AI ambitions as the company looks for new areas of growth.
Credits: LatestLY
Apple Restructuring Comes With a Focus on Efficiency
Apple’s reported restructuring comes as the company looks for ways to control costs, simplify decision-making and generate more value from its existing products while developing new sources of revenue.
The decision to retain thousands of AppleCare employees while pursuing smaller cuts indicates that the efficiency push is not being applied uniformly across the organisation.
Instead, Apple’s reported approach under Ternus appears focused on changing how teams are structured and how quickly products move from development to launch.
With Ternus only recently taking over from Cook, the restructuring could mark the beginning of a broader shift in Apple’s internal operations. For now, however, the reported changes remain unconfirmed by the company.
